PARENT:-An entity that controls one or more entities.
Subsidiary:-An entity that is controlled by another entity.
NCI: -A parent company doesn't need to purchase all the shares of another company to gain control. The holders of other remaining shares are called non-controlling interests.In such a case Parent does not own all the shares of the subsidiary company but does exercise significant control over it.
WHAT IS PRE AND POST ACQUISITION PROFIT?
Any profit or losses of a subsidiary made before the date of acquiring the subsidiary are termed as pre-acquisition profit, such profits are not included in consolidated group financial statements.
Any profits or losses which arose after acquiring the subsidiary by the parent company are termed as post-acquisition profits, such profits are included in consolidated group financial statements.
WHAT IS POSITIVE GOODWILL?
Goodwill is carried as a non-current asset in the consolidated statement of financial position if and only if the amount of investment made by a parent in the subsidiary is more than the parent's share of net equity. Positive goodwill is actually the extra amount paid by the parent to a subsidiary.
Subsidiary:-An entity that is controlled by another entity.
NCI: -A parent company doesn't need to purchase all the shares of another company to gain control. The holders of other remaining shares are called non-controlling interests.In such a case Parent does not own all the shares of the subsidiary company but does exercise significant control over it.
WHAT IS PRE AND POST ACQUISITION PROFIT?
Any profit or losses of a subsidiary made before the date of acquiring the subsidiary are termed as pre-acquisition profit, such profits are not included in consolidated group financial statements.
Any profits or losses which arose after acquiring the subsidiary by the parent company are termed as post-acquisition profits, such profits are included in consolidated group financial statements.
WHAT IS POSITIVE GOODWILL?
Goodwill is carried as a non-current asset in the consolidated statement of financial position if and only if the amount of investment made by a parent in the subsidiary is more than the parent's share of net equity. Positive goodwill is actually the extra amount paid by the parent to a subsidiary.
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